Company formation in Estonia

COMPANY REGISTRATION IN ESTONIA

Setting up a Company in Estonia - Fast & Simple Business Formation

If you’re planning to launch your business in Europe and expand into the European Union market, then registering a company in Estonia is an ideal starting point. This strategic choice offers a gateway to the EU, along with a favorable business climate and advanced digital infrastructure.

Start Your Business in the EU: Why Choose Estonia

Estonia is renowned as one of the most open and dynamic economies in Europe, celebrated for its progressive and adaptable commercial environment. With a transparent and straightforward company formation process, your legal entity can be established and ready to operate within days.

Starting and Running a Business in Estonia

usiness Opportunities in Estonia: Enjoy Zero Corporate Tax

If you’re determined to establish a company in Europe, prioritizing Estonia for your business setup should be a top consideration. For years, Estonia has focused on creating a welcoming and innovative business environment to attract foreign capital and entrepreneurs worldwide.

A Business-Friendly Haven for Digital Nomads and Innovators

Estonia is the perfect destination for setting up a business, especially for global entrepreneurs and digital nomads. Its e-Residency program enables easy online management of an EU-based business. The country offers a simple, competitive tax system and a tech-friendly environment, boasting a skilled workforce and a strong focus on innovation. Its strategic location provides easy access to Europe, making it a prime choice for international business expansion.

A Leading European Hub for Innovation and Fintech

Estonia has become a vibrant center for a diverse array of European IT clusters and forward-thinking startups. This includes blockchain ventures, crypto exchanges, and innovative Web 3.0 projects. It’s also a breeding ground for DAOs, NFT marketplaces, fintech companies, crowdfunding platforms, and emerging DeFi models, all contributing to its growing tech landscape.

Key Advantages of Doing Business in Estonia

Essential Benefits of Starting a Company in Estonia

For many years Estonia is a leading country (1st place) in the International Tax Competitiveness Index and consistently ranks high in the Economic Freedom Index (8th place) and in the Ease of Doing Business Index (18th place).

Expand Your Business Horizons with Estonia

Establishing a company in Estonia is an effective way to launch your business project and enter international markets. It helps diversify risks, reduce administrative burdens, and lower the tax load on your existing enterprise.

• The Tax Rate on Retained Earnings is 0%

  Enterprise profits are not subject to corporate or income tax until they are distributed to the founders – all profits generated by the enterprise can be used in full for business development or reinvested to generate additional income, making it similar to a Tax Haven.

• The Minimum Amount of the Share Capital is 0.01 €

  When registering a company, the founders may form the share capital of any size, and if the amount of the contributed ownership capital does not exceed 50,000 euros, the Commercial Register does not require any documentary proof of payment into the charter fund of the entity (i.e. confirmation from the bank or the payment system).

• A 100% Digital Nation

  The near-total digitization of the public sector and the business environment in Estonia allows foreign investors and entrepreneurs to easily and quickly register companies, manage finances, pay taxes, and conduct business online.

This overview only scratches the surface of the Numerous Benefits and Advantages associated with Incorporating a Company in Estonia. Thus, locating your enterprise or start-up in the jurisdiction of the Republic of Estonia will stand out favorably from other alternatives and will help bring your business project into the legal framework of the European Union as soon as possible.

 

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REGISTERING A COMPANY IN ESTONIA

Open a Company and Start a Business in Estonia in Just a Few Days

Estonia has become a magnet for many foreign entrepreneurs and investors thanks to its innovative approach to business regulation and digital economy. Over the past 20 years, the Government of the Republic of Estonia has pursued an active policy aimed at attracting foreign entrepreneurs and investors to the country.

Ways to Set Up a Company in Estonia

The process of Setting Up a Company in Estonia is completely devoid of bureaucracy, and it is as simple and transparent as possible – anyone interested can Create a Company in Estonia in just a few days.

Foreigners interested in opening a company in Estonia can use the following methods to register their enterprise:

• Register a Company Online with e-Residency

  In order to set up an enterprise in the specialised online environment of the Commercial Register, all active persons of the company (members and general managers) will require an e-Residency card.

  Term: 1 day | Price: from 375 €

• Company Incorporation in Person

  The procedure requires a personal visit to the notary’s office in Tallinn. Our lawyers will hold a preliminary consultation with you and will provide you with legal support throughout the entire process.

  Term: 1-5 days | Price: from 550 €

• Open a Company Remotely by Power of Attorney

  Create a company remotely without personal presence, you should issue a notarised power of attorney in the name of the lawyers of our agency, and we will carry out the procedure for establishing an undertaking on your behalf.

  Term: 5-10 days | Price: from 900 €

OUR PRICING PLANS

Corporate Services for non-Residents

Outlined below is a detailed breakdown of the fees for launching a company in Estonia. This includes a comprehensive list of costs associated with various additional corporate and legal services that we offer to support your undertaking’s setup.

• Type of services
  Price

• Opening a company online with e-Residency | Basic pagkage
  375 €
• Advanced pagkage
  700 €
• Company registration in person by visit | Basic pagkage
  550 €
• Advanced pagkage
  850 €
• Establishing a company remotely by power of attorney | Basic pagkage
  900 €
• Advanced pagkage
  1200 €
• Legal address in Tallinn (price for 1 year)
  250 €
• Contact person in Estonia (price for 1 year)
  250 €
• Virtual Office service (incl. legal address and contact person, price for 1 year)
  400 €
• Legal advice (price for 1 hour)
  75 €
• Accounting consulting (price for 1 hour)
  75 €

* The cost of formation of an entity, regardless of the method, includes payment of all notary and state fees, as well as 1 hour of a legal or accounting advise. The advanced package includes legal address and contact person services for one year. The prices indicated above do not include a possible VAT.

 

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Our specialists will hold a preliminary consultation with you and offer you the best options to incorporate an enterprise, as well as prepare all the necessary constituent documentation and will provide you with support throughout the entire process of establishing an undertaking.

Why Choose Eesti Firma OÜ?

Eesti Firma OÜ: Your Reliable Corporate Services Partner

Our team of consultants, lawyers and accountants has been specialising in commercial law and foreign business support in European Union for over 10 years.

Team of corporate advisors and lawyers with 10+ years of experience

The experience and knowledge we have gained over the years enable us to offer our clients only the highest quality service and to find solutions for the most complex and unusual situations.

The main reasons to contact us for Company Registration in Estonia:

• Reliable Service Provider

  We are a licensed company registrar in Estonia and hold the state license of provider of trust and corporate services No. FIU000144, issued by the Financial Intelligence Unit (FIU).

• Experience of Many Years and Qualified Specialists

  Our team consists of experienced consultants and only graduate lawyers and accountants. More than 3,000 enterprises have been incorporated with our help in 10 years of activity.

• All Services in a Single Place

  We are a direct service provider and provide services using only our own resources, with no third parties involved in the process. All consultants, lawyers and accountants are employees of our agency.

• Quality Guarantee

  We guarantee impeccable quality and efficiency, as well as complete confidentiality and a responsible approach to each client.

• We Value Our Clients

  If you are our client, you can always count on our support, including free legal or accounting advice from our specialists if necessary.

We will be glad to become your trusted partner for many years to come, and we will do everything we can to ensure that your undertaking’s entry into the market meets your expectations as closely as possible.

Step-by-Step Guide to Start a Company in Estonia

Everything You Need to Know About Starting a Business in Estonia

Establishing a business in a new country is an exciting opportunity to expand your horizons and tap into new markets. Estonia offers a straightforward and efficient process for company formation, making it an attractive destination for entrepreneurs worldwide.

This guide provides an overview of the essential steps to incorporate your company in Estonia, helping you navigate the process with confidence:

• Choose Your Company Type

  The most common and suitable option for small and medium-sized businesses is the Private Limited Company (OÜ). This structure offers limited liability protection, meaning your personal assets are safeguarded from business debts and liabilities incurred by the company.

• Select a Unique Company Name

  Ensure your company name is unique and not already registered by another entity in Estonia. The name must comply with Estonian regulations and include the appropriate legal form abbreviation, such as “OÜ” for a Private Limited Company. It’s important to check the availability of your desired name in the Estonian Business Register before proceeding.

• Choose the Registration Method

  Decide whether to register your company online or through a notary. Online registration utilizes Estonia’s e-Residency program, allowing you to manage your business remotely using a digital ID. Alternatively, notary registration can be conducted either in person in Estonia or remotely based on a power of attorney. This provides flexibility if you cannot be physically present in Estonia, as you can authorize a representative to handle the registration on your behalf.

• Provide a Legal Address in Estonia

  Secure a local Estonian address to serve as your company’s registered office. This address is required for official correspondence and must be a physical location within Estonia. If you don’t have a physical presence, virtual office services are available to fulfill this requirement, providing you with a legitimate business address.

• Prepare the Articles of Association

  Draft the Articles of Association, a crucial document that outlines your company’s structure, governance, and operational rules. This document should detail the roles and rights of shareholders and board members, the amount of share capital, procedures for transferring shares, and other essential regulations governing the company’s activities.

• Register Your Company

  Submit all required registration documents through your chosen method. If registering online, use the company registration portal and authenticate with your digital ID. If registering via a notary, ensure all documents are properly prepared and, if registering remotely, that the power of attorney is correctly executed. Accurate and complete information will help avoid delays in the approval process. Once approved, your entity will be officially registered in the Estonian Business Register.

• Open a Business Bank Account

  Set up a corporate payment account to manage your undertaking’s finances. This account is necessary for handling transactions, paying taxes, and receiving payments. You can choose to open an account with an Estonian bank or opt for an international fintech service that supports Estonian companies, depending on your business needs and convenience.

• Set Up Accounting

  Arrange for accounting services to ensure compliance with Estonian accounting standards. Hiring a local accountant familiar with Estonian laws can be beneficial, or you can use accounting software that meets legal requirements. Proper accounting practices are essential for accurate tax filings and the submission of annual reports.

• Stay Compliant with Ongoing Obligations

  Maintain compliance by submitting annual financial statements to the Estonian Business Register and regularly filing necessary tax declarations, including corporate income tax and VAT if applicable. Staying updated on any changes in legislation that may affect your business operations is crucial for ongoing compliance and the smooth running of your company.

By following these steps, you can successfully establish your business in Estonia and take advantage of its innovative business environment. Whether you’re a startup enthusiast or an established entrepreneur, Estonia offers a transparent and efficient platform for your business ambitions.

Estonia vs Other EU Countries

Unique benefits of establishing a company in Estonia compared to other EU nations

When it comes to forming a company within the European Union, Estonia offers distinctive advantages that set it apart from other member states. Beyond the common benefits of EU membership, Estonia provides a forward-thinking environment ideal for modern businesses.

To understand why Estonia stands out, let’s explore its comparative advantages over other EU countries:

• Unique Corporate Tax System

  Estonia applies a 0% corporate income tax on undistributed profits, meaning enterprises are only taxed when profits are distributed as dividends. This encourages businesses to reinvest earnings and fuel growth. In contrast, most other EU countries impose corporate taxes on annual profits regardless of distribution, which can limit a undertaking’s ability to expand using retained earnings.

• Effective e-Residency Program

  Estonia’s e-Residency program is a pioneering initiative that allows entrepreneurs worldwide to establish and manage an EU-based business entirely online, without the need for physical presence. While some EU countries are beginning to offer digital services, Estonia’s e-Residency stands out for its efficiency and comprehensive functionality. Other EU nations do not yet provide a comparable program that offers secure digital identification and full access to government e-services for non-residents.

• Innovative Legal Framework

  Estonia is at the forefront of embracing new technologies, with progressive laws supporting sectors like blockchain, fintech, and cryptocurrencies. This legal openness provides a nurturing environment for innovative companies. Conversely, many other EU countries have more conservative regulatory frameworks that may hinder the growth of tech-driven businesses due to stricter regulations and slower adaptation to technological advancements.

• Transparent and Efficient Governance

  Renowned for its low levels of bureaucracy and corruption, Estonia offers a transparent business environment. Government processes are streamlined and accessible online, making interactions with public institutions straightforward and efficient. In comparison, some other EU countries have more complex bureaucratic procedures and higher levels of administrative hurdles, which can slow down business operations and increase costs.

• Eurozone Membership

  Estonia is part of the Eurozone, using the Euro as its currency, which eliminates currency exchange risks and simplifies financial transactions within Europe. While some EU countries have retained their national currencies, leading to potential exchange rate volatility and additional transaction costs, Estonia offers financial stability and ease of doing business across Eurozone countries.

• Advanced E-Governance Services

  Beyond basic digital services, Estonia provides comprehensive e-governance solutions, allowing businesses to handle virtually all administrative tasks online—such as signing documents, filing reports, and paying taxes. This level of digital integration is more advanced than in many other EU countries, where businesses may still be required to complete certain processes in person or deal with paper-based administration.

• Vibrant Startup Ecosystem

  With one of the highest numbers of startups per capita in Europe, Estonia boasts a dynamic entrepreneurial community. Access to local incubators, accelerators, and a network of experienced mentors provides unique opportunities. Other EU countries may have less developed startup ecosystems or more competitive environments where gaining support and resources is more challenging.

Choosing Estonia for your company formation means tapping into a unique blend of innovation, transparency, and efficiency. These advantages, distinct from those found elsewhere in the European Union, make Estonia an exceptional place to start and grow your business.

Additional Services

Legal Support and Corporate Services for Your Estonian Company

We offer a full range of services necessary for the successful Creating a Company in Estonia, start of commercial activities and further growth of your business. Among other things, we offer our clients the following corporate and support services:

• Accounting Services

  We offer comprehensive Tax and Accounting Service for local undertakings. Our specialists will provide you with qualified Accounting Support in current document management, as well as in preparing Annual Reports, filing tax returns, obtaining VAT number and EORI number, accounting for fixed assets, calculating salaries of employees, etc.

• Legal Address and Contact Person

  Every entity formed in Estonia must have a Registered Address. For those enterprises that do not have local residents among their founders and directors, we strongly recommend appointing a Contact Person who can receive correspondence sent to the organization and official notices from state institutions. We offer a Legal Address Service in Tallinn as well as a Virtual Office and contact person service for non-residents.

• Legal Services

  Our lawyers have many years of experience in the field of Corporate and Civil Law, providing a wide range of Legal Services. We will give you a thorough consultation and provide a Legal Opinion on the subject of your interest, help you to analyze or correctly prepare the required legal documentation, including Corporate Documents, and, if necessary, represent you in negotiations with contractors or in court proceedings.

• Payment Account Opening

  We provide assistance in Opening of Payment Accounts with Banks and Payment Service Providers like EMI or PSP in the European Union. We will find and offer you the best and most efficient payment solution based on your corporate model and the nature of your business activities.

We offer professional business consulting, accounting and legal support to projects that are at the initial stage of development as well as to operating enterprises seeking to restructure their internal processes and optimise their economic performance.

Get in Touch for a Free Advice

Contact Us for a Consultation and Price Quote

Are you interested in Registering a Business in Estonia? For individual price quotations on Company Establishing in Estonia, as well as its further support and service, feel free to contact our specialists and consultants!

Corporate services are our specialty!

We will analyze your business model together with you and offer you the most effective Estonian Company Incorporation solution in order to bring your business project to the Single Market of the European Union as soon as possible.

FAQ | Frequently Asked Questions

Estonia attracts entrepreneurs from all over the world thanks to its innovative economy, ease of doing business, and progressive digital infrastructure. Our goal is to provide you with useful information that will help you understand the process and benefits of registering your business in this advanced country.

Below, you will find a list of the most frequently asked questions that our consultants encounter in their work. We hope that this material will be interesting and useful to you.

We hope the information provided has helped you better understand the process of starting a company in Estonia and answered some of your questions. Registering a business in this country can open new opportunities and offer many advantages, from an efficient tax system to access to the European market.

If you have any further questions or need additional assistance, do not hesitate to contact our specialists. We are ready to support you at every step of your entrepreneurial journey. Good luck with your endeavors in Estonia!